Dyoll Insurance Company was placed in provisional liquidation by an order of the Grand Court on Monday.
Kenneth Krys and Christopher Stride of RSM Cayman Islands were appointed as Dyoll’s joint provisional liquidators.
Stuart Diamond, who represented the petitioning creditor in the legal action that resulted in the order of liquidation, said it was necessary to go this route.
‘If nobody had done this, all of the creditors would have lost all of their money,’ he said. ‘Before this, the creditors were looking at no return. Now they’re looking at getting a return. The only questions are how much and how soon.’
As part of their duties, the joint provisional liquidators will try to ascertain the assets of Dyoll in the Cayman Islands.
Public records show that Dyoll owns a little more than 35 per cent of Cayman Insurance Centre Ltd., the company that acted as broker for its policies sold in the Cayman Islands.
Mr. Krys and Mr. Stride said in a press release that they will visit the premises of CIC and hold discussion with the company’s directors and officers with a view of securing the company’s assets, books and records.
Mr. Diamond said Dyoll might have more assets in the Cayman Islands.
‘There’s marl road rumours about bank accounts,’ he said, noting that he was unsure whether cheques from CIC to Dyoll would have been deposited here or in Jamaica.
‘Regardless, they have assets in the jurisdiction,’ Mr. Diamond said. ‘The only way to get value for the creditors is to by going after those assets and the deep pockets behind the company.’
Mr. Diamond said he had represented creditors who had $25 million worth of unpaid claims against Dyoll.
Now that the liquidation order has been issued, Mr. Diamond said the best thing other creditors could do is register their claims with the joint provisional liquidators.
Mr. Diamond said he hoped to be elected to represent the Creditors’ Committee once it is formed.
The joint provisional liquidators said they intend to call a public meeting of the creditors and other interested parties shortly.
The Jamaica-based Dyoll had inadequate reinsurance to cover Hurricane Ivan claims.
The Jamaican Observer last reported that Dyoll was exposed to as much as $100 million of claims in Cayman, over and above its reinsurance coverage.
Efforts to recapitalise the company were unsuccessful.
Last month, the Financial Services Commission of Jamaica and Temporary Manager of Dyoll Kenneth Tomlinson carried out a review of the insurance company’s financial position and found it to be insolvent.